Articles - Investors split over chances of Euro cure


 Mike McCudden, Head of Retail Derivatives at Interactive Investor (www.iii.co.uk), gives his thoughts on the trading week so far:

 "Greece and Italy may not be governed by democracy at the moment, but the markets certainly are. Investors appear to be split, with some floating voters continuing to hold but the majority taking flight once again in continued fear of contagion in the Eurozone, pushing markets lower. Previous volumes, seen recently as banks last neared recent lows, appear to have dissipated.

 "But the FTSE is still swinging like a pendulum through the 5500 mark throughout today, giving the impression that many investors are still optimistic a resolution to the Eurozone crisis is on the cards.

 "The fear is that Eurozone contagion will happen - but it is happening. It's the threat of global contagion that's on the cards now.

 "Credit markets are drying up as rising debt yields are spreading like cancer throughout Spain, Italy and Portugal, whose bond yields are hovering around the critical 7% mark. And continued pressure on the French may see its hallowed AAA rating under pressure.

 "Substantial ECB intervention is needed in the bond markets as soon as possible to stem the rot, or it may be a case of too little too late. The Germans are holding back, repeating the same lines on hyperinflation and what happened with the Weimar Republic, but in reality that is highly unlikely.

 "Centrally controlled fiscal policy may be the only answer to satisfy the markets, along with an EFSF on steroids if it is granted a banking license and the ability to leverage funds. Failure to act now is unthinkable."

Back to Index


Similar News to this Story

Inflation risk premium why think about it now
An inflation risk premium (IRP) is nothing new. Market-implied inflation has historically been higher than actual realised inflation. There is only
Workplace emergency savings
Nest Insight event dedicated to workplace emergency savings, where we’ll share the latest findings from our research trials and hear from other practi
How to identify the key issues early in reserving
This article looks at how an analytical approach to reserving can help actuaries focus on what really matters, right at the start of the process. We s

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.